The Table Gives Marginal Product Data for Resources a and B

question 272

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $10 and $20 respectively, when the firm hires the profit-maximizing combination of resources, its economic profit will be

• A)$140.
• B)$222.
• C)$117.
• D)$82.

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